Vietnam issued new Decree to attract more high-tech investment

This Decree regulates procedures for establishing and expanding high-tech parks, preferential policies and investment support for projects in high-tech parks as well as operating activities in high-tech parks.

Notable benefits under Decree 10/2024 for investors:

According to Decree 10/2024, venture investors participating in infrastructure projects in high-tech zones will enjoy many benefits, including exemption from land rent and reimbursement of site clearance costs. . Additionally, preferential interest rates on loans and access to capital within established regulatory frameworks will be provided to support these efforts. Decree 10/2024 also requires local authorities to develop residential areas and appropriate social infrastructure around high-tech parks to serve workers. These facilities can be built through public-private partnerships (PPPs) or private capital, enhancing the overall attractiveness of these areas to potential investors. Manufacturing and  exporting businesses operating in these non-tariff zones will also benefit from exemption or reduction of export taxes, similar to those enjoyed in non-tariff zones.

To be established, a high-tech park must fully meet the following specific conditions:

- Comply with approved regional and provincial planning.

- There is a suitable land use scope and an appropriate natural area.

- Located in a favorable location for infrastructure and transportation.

- Ability to connect with high quality research and training facilities.

- Have a feasible plan for mobilizing resources to develop technical infrastructure, social infrastructure as well as human resources and a professional management team.

- Construction of nearby residential areas and public works for experts and workers working in the high-tech park to  participate in the high-tech park construction process.

Meets environmental protection requirements as prescribed by law.

- Ensure national defense and security measures.

The Decree lists the following conditions for expanding high - tech parks:

- The expanded area must meet the conditions specified in Article 31 of the Law on High Technology to establish a high-tech park.

- For high-tech agricultural zones, the expansion area must meet the criteria specified in Article 32 of the Law on High Technology to establish a high-tech agricultural zone.

- The occupancy rate of the current high-tech park must be at least 60%.

Ho Chi Minh City is looking for investment in key high-tech projects. The city aims to attract investment capital with a total value of up to 492 million USD into many research, production and service joint ventures in the high-tech field. This includes approximately $190 million allocated to five electronics and semiconductor-focused projects, along with $302 million allocated to an expanded data center initiative. According to a recent announcement by the People's Committee, Saigon Hi-Tech Park, will allocate about 10 hectares of combined space for these proposed projects, more specific information has not yet been disclosed.

Opinion:

Vietnam is quickly emerging as a promising destination for high-tech projects. As the country continues to prioritize technological advancement and industrial transformation to meet the needs of its young workforce and achieve national development goals,

The state has introduced a series of incentive and support measures to encourage investment in high-tech parks and technology enterprises. Priority industries in Vietnam, including high-tech enterprises, enjoy preferential corporate tax cuts, credit incentives and exemption and reduction of land rent and water surface rent

Vietnam maps showing administrative units, sources of critical raw materials and industrial zones locations.